Morning journal and courier., 1887-09-03
THE BALTIMORE AND OHIO sOLD.

THE BALTIMORE AND OHIO SOLD. A syndicate ofNew York, Philadelphia 1 and London Bankers Buy It-All | Antagomfsm With Other Roads to be l Removed.
 l NEW YORK, Sept 2.-Robert Garrett sur ! renders to the endorsements under which Baltimore and Ohio 1abored and gives up the control of the road to a syndicate of New York, Philrdelphia and London bankers. Work at Staten Island and on the line now being constructed between Philadelphia and this city is to be stopped and hereafter the Baltimore and Ohio will be run in harmony with the Pennsylvania and Reading roads
 The telegraph line will be controlled if not
 absorbed by Western Union and the sleeping
 car interest goes into Pullman's hands. The
 deal which brings about these great changes
 was engineered by Drexel, Morgan & Co.,,
 assisted by Edward Lauterbach, the latter's
 decision to-day that the telegraph system is
 not covered by the sterling loan made to the
 railroad being preliminary to the consumma-
 tion of the contract with the syndicate. The
 syndicate is composed of J.S. Morgan 6 Co.,,
 London, Drexel, Morgan & Co.,, Peabody 6
 Co., and Brown Bros. of this city and Drexel
 & Go. of Philadelphia. The most important
 point in the contract provides that the man
 agement of the company shall be placed in
 competent hands satisfactory to the syndi-
 cate. A. J. Cassatt, vice president of the
 Pennsylvania road, is believed to be booked as Garrett's successor. Satisfactory contracts are to be made with the Pennsylvania and Reading on all business north of Phil adelphia and with all other trunk lines entering New York, by which all an tagonism will be removed and insure the permanent working of the road in harmony with the other trunk lines. In addition to these contracts, work on the line in process of construction from Philadelphia to New York on Staten Island will be stopped. In consideration Of these contracts being signed and with the control in their hands, the syndicate agree to relieve the railroad from it's present embarrassment by providing SIC, ,00O, 900 with which to take up the float ing debt. This will be represented by $50, 000,0 900 in B. & o. consolidated 5's and $5, ,000,0 preferred stock. The floating debt as it stands amounts to $7,000, 900, mostly in the shaps of certificates of indebt- edness, scrip and note. Of this amount s4, 900, ,000 is said to have matured on the rett to a sense of his position. One of the parties to the syndicate authorizes the fol- lowing statement:
 The position of the Baltimore and Ohio as an Ishmaelite in railroad, sleeping car, express and telegraph business is given up. All the outside enterprises will be sold to parties to whom they will be valuable. The Western Union will control, if it does not buy, the telegraph lines and the Pullman Palace Car company will take the sleeping car bushes. The express business has al- ready gone to the U. S. Express company. The affairs of the railroad company will be entirely reorganized and placed upon a sound financial basis.
 Drexel, Morgan 6 Go. were in correspond ence all day with their houses in London and and late this evening confirm ed the statements that the contract and ne- yotiations given above had just been signed.